Vienna OPEC agreed on Thursday to temporarily cut oil production, but expected a commitment from Russia – which is not a member of the group – before deciding the exact volumes of a reduction in order to prop up oil prices, they said. Two sources of the group.
Russian Energy Minister Alexander Novak flew home from Vienna to talk with President Vladimir Putin in St. Petersburg. Novak will return to the Austrian capital on Friday for talks by OPEC, led by Saudi Arabia, and allied producers of the group.
The price of crude oil has fallen by almost a third since October, but US President Donald Trump has demanded that the Organization of the Petroleum Exporting Countries (OPEC) abstain from production cuts.
“We hope to conclude something at the end of tomorrow, We have to involve non-OPEC countries,” Saudi Energy Minister Khalid al-Falih told reporters. “If they are not all willing to join and contribute equally, we will wait until they are ready,” he added.
When asked if OPEC could not come to an agreement, Falih said all options are on the table. Proposals for production cuts by OPEC and its allies ranged between 0.5 million and 1.5 million barrels per day (bpd), and 1 million bpd was acceptable, he said.
“One million bpd may disappoint many, but if the cut is above the September or October baseline, instead of November, the net impact would be enough to limit stockpiles,” said Greg Sharenow, Pimco’s executive vice president. , on the margins of the OPEC meeting.
OPEC delegates have said that the group and its allies could reduce production by 1 million bpd if Russia contributes 150,000 bpd of the cut. If Moscow contributes about 250 thousand bpd, the general cut could exceed 1.3 million bpd.
Brent oil futures fell as much as 5 percent, to less than $ 59 a barrel, amid concerns that there may be no agreement. OPEC’s closed meeting began around 11:00 GMT and continued after three and a half hours.
“We believe that OPEC will spend some time choosing which words to use, being too cautious with words, to please President Trump, involves the risk of diluting the message,” said Olivier Jakob of Petromatrix.